Building a Sturdy Business
Building Trust to Get More Clients

Take a minute to consider things from your client's perspective: if you wanted to hire a contractor, what qualities would you look for?

In addition to the basics (skills and competency), you'd want reassurance that the contractor can get a job done safely, well, and on time. Plus, you'd want to know that if they made a mistake, you'd be able to recoup some expenses.

In this guide, you'll learn how you can show clients that you're exactly the kind of contractor they should hire. Specifically, let's look at how the following three actions can go a long way toward building your reputation:

  1. Earning referrals from past clients.
  2. Getting bonded and licensed.
  3. Having insurance for contractor liability.
Building a Reputation: Earn New Business from Past Clients

Building a Reputation: Earn New Business from Past Clients

The best way to get new customers is to do right by your current customers. But building a solid reputation is harder than it appears. Here are three tips to help you along the way:

1.Focus on communication. So much of your work relies on good communication. Make sure clients know exactly what to expect from your project (e.g., parameters, deadlines, materials, payment, etc.). You can outline this information in contracts to ensure everyone is on the same page. To learn more about contracts, read, "How to Use Client Contracts to Reduce Contractor Liability."

  1. Immediately address client concerns. As a contractor, your head is often buzzing with all the details you need to keep track of to finish a complicated construction project. However, make sure you address client concerns as they come up. This will make sure that a small problem doesn't become a fiasco down the road.
  2. Ask for referrals from existing clients. When a client likes your work, ask them for referrals. This can be as simple as leaving a business card with them. You can also directly ask if they know anyone who is looking for a contractor.
Why Getting Bonded Matters for Construction Professionals

Why Getting Bonded Matters for Construction Professionals

Construction professionals often need a License and Permit Bond when they apply for a professional license, such as a contractor, plumber, or electrician license. A License and Permit Bond is a guarantee that you make to the government entity that provides your license or permit.

Here's how it works:

  1. Before the municipal office licenses you, you must have a License and Permit Bond.
  2. The bonding terms state that your insurance company will pay the municipal government a certain amount of damages if you break the law or fail to comply with other contractor regulations.
  3. If you aren't compliant with safety regulations or building codes, the insurer pays the government agency, but you'll have to pay the insurance company back.

In addition to helping you get licensed, bonds serve another purpose. They prove to clients that they can trust your business to do good work. The bond acts as proof that you followed all the legal protocol to become licensed in your municipality. Many clients want to know their contractor is doing everything "above board," and your bond demonstrates your professionalism.

Contractor's Liability Insurance: Why Clients Require It

Contractor's Liability Insurance: Why Clients Require It

Contractor's liability insurance is a General Liability Insurance policy that covers construction lawsuits over…

  • Property damage.
  • Client bodily injuries.
  • Problems with your completed work.

Say you finished building an addition to a house. It looks great, but after the first big rainstorm, your client calls you about a leak. The water damaged their electronics and new furniture. In a situation like this, the client could sue you for the losses your work caused.

When that happens, you'll be glad you invested in adequate contractor's liability insurance. Your policy can pay for your legal defense fees and settlements or judgments.

If you advertise that you are licensed, bonded, and insured, clients know that they're working with a contractor who has the financial backing to make amends for mistakes in the finished work.

To learn more about insurance, check out, "Construction Insurance: Why You Need It."

Free Quotes: Insurance for Contractors

Free Quotes: Insurance for Contractors

For free quotes on Surety Bonds, contractor's liability insurance, or other policies, submit an online insurance application today.

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